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1.When there is high inflation in the economy, how will it, affect the supply of money in the economy?, (a) No effect on the money supply, (b) Supply of money decreases, (c) Supply of money increases, (d) None of the above

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2. What is the base year for measuring inflation at, wholesale Prices Index (WPI) in India?, (a) 2004-05, (b) 2001-02, (c) 2011-12, (d) 2014-15

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3. At which stage Wholesale Price Index (WPI), based inflation is calculated?, (a) First stage of transaction, (b) Final stage of transaction, (c) Intermediate stage of production, (d) None of the above

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4. Which of the following measure is adopted to, , reduce inflation?, (a) Reduction in bank rate, , (b) Reduction in Repo rate, (c) Increase in government expenditure, (d) Cuts in government spending

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5. Which of the following can be treated as anti inflationary, , policy/policies in Indian economy?, a. Fiscal Policy of the government, b. Monetary Policy of the RBI, c. Other policies like increase in production, price control etc, d. All of the above

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6. The RBI can increase the money supply in the market, , bya. Buying government securities., b. Selling government securities., c. Borrowing money from commercial banks., d. None of the above

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7. Find out the incorrect statement:, , Cause of inflation is –, a. High growth of money supply, b. High rate of public expenditure, c. Low fiscal deficit, d. Parallel economy

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8. Which of the following is/are cause/causes behind, inflation?, a. Shortage of supply of agricultural and industrial, production, b. Inappropriate government policy, c. Speculation of agricultural products, d. All of the above

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9. Which out of the following is phenomenon that leads to, Demand-Pull Inflation?, , a.It is a situation when aggregate demand in an economy, outpaces aggregate supply, b. It is a situation of persistent rise in inflation along with dip, in growth and increase in unemployment, c. It is a situation caused by an increase in prices of inputs like, labour, raw material etc, d. It is a situation when a nation experiences very high and, accelerating inflation.

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10. Cause of Inflation in India is/are :, a. Deficit financing, b. Erratic agriculture growth, c. Inadequate rise in industrial production, d. All of the above

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Thank You!